Rating is an estimate of the creditworthiness and Performance Capabilty of an enterprise or a country. It is an opinion made by credit & Performance evaluators of a borrower’s potential to repay a debt or execute a project. Every rating grade comes with its probability of default, which in turn assists investors/lenders/ to take informed investment & Management decision.
Rating is arrived at after considering various financial, non-financial parameters, past credit history and future outlook.
The Credit rating experience gives SMEs an insight into corporate credit analysis and methodologies for understating fundamentals of credit risk, cash flow modelling, enlarging managerial skills and best practices in doing business. Peer group comparisons help creating standardisation in units of SMEs besides identifying risks for hedge and for grooming strategies, which exist, for exploiting opportunities. Rating pinpoints the overall health of the enterprise and explains exactly how the business will fit in relation to competitors and how to deal with it.
The Ratings are recognized by Government of India and regulatory agencies in India. The Ratings agencies we represent are registered with the Securities and Exchange Board of India. RBI, NABARD, NHB and NSIC. RBI has also recognized as eligible external credit rating agencies for the purpose of Basel II implementation in India
The various rating agencies we represent has a significant rating coverage of the Indian Banks , Financial Institutions and havings the confindence of Indian Institutional Investors in Ratings. The ratings are also used by a wide range of investors including Industrial companies, Banks, Non-banking financial companies (NBFCs), Infrastructure entities, Microfinance institutions, Insurance companies, Mutual funds, State governments, Urban local bodies, Corporate and Retail investors,
The Ratings endeavor has been to provide investors and risk managers with independent, authentic and insightful credit opinions based on detailed in-depth research, which encompasses detailed analysis of risks that affect credit quality of an issuer. The rating analyst strength consists of large number of well qualified and multi-faceted professionals from diverse backgrounds such as; financial analysts, economists, sector specialists, chartered accountants.
We facilitates for types of ratings including
• Bank Loan Ratings (Under Basel II - Long-term & Short-term) – Basel II
• Facility Ratings
• Corporate Governance Ratings
• Small & Medium Enterprises (SME’s) Ratings
• Grading of the Construction Entities
• Grading of courses offered by Maritime Training Institutes (MTIs)
• Rating of Parallel Marketers of LPG and Kerosene
• SSI Rating
• Issuer Ratings For State and Local Governments, Corporates, Banks and Financial Institutions
• Corporate Governance Ratings
• Real Estate Project Ratings
• Real Estate Developer Ratings
MICRO, SMALL AND MEDIUM ENTERPRISE RATING BENEFITS
a. Assists in risk management by highlighting parameters measuring operational, financial and business risk.
b. Enhance acceptability with Banks, Financial Institutions and provides access to cheaper and timely credit.
c. It is a “holistic health check-up of the unit” that establishes credibility, goodwill and assists in dealing with large companies.
d. Helps in marketing and serves as first point to generate interest among potential partners.
The independent risk evaluation of SMEs by an unbiased third party lends credibility to them and opens doors for them while dealing with MNCs and corporates
The government also favours rated SMEs, restricting certain contracts for such firms. It also operates a performance and credit rating scheme through various credit rating agencies via the National Small Industries Corporation.
It also provides easier access to other sources of finance such as private equit. Better ratings have helped the SMEs retain customers and suppliers, and negotiate better terms with them
Subsidy to MSME for rating fee :
In order to encourage SMEs to go for credit rating the NSIC is providing 75% subsidy on the ‘Performance and Credit Rating scheme’ , the scheme in consultation with Indian Banks’ Association (IBA) and Rating Agencies.
Enhanced Acceptability with Banks through Memorandum of Understandings (MOUs)
The Ratings agencies have entered into the MOUs with the Banks/Financial Institutions who are working closely to popularize third party ratings amongst their existing as well as potential MSME units in the country. Some of these banks are also extending interest rate benefits to better rated SMERA units.
A good rating can help you gain faster and cheaper credit by a reduction in the loan processing time for your venture. The agencies that provide rating for SMEs have tie-ups with several banks to offer preferential interest rates based on ratings. The banks may also approach you with funds. In many cases, savings from the reduced borrowing cost exceeds the rating fee.
NSIC also gives concession in rate of interest for units rated under the Performance and Credit Rating scheme.
Associate Rating & Dealer Evaluation Services
Expansion is a strategy that takes the business to the next level by funneling increased revenue, presence and people’s participation. Expanding however, is not a trivial business move; it requires partnering with individuals/entities in the markets less known to the management.
In the current economic climate when new Business Channel Partners cannot be relied upon to deliver sufficient revenues and bottom line profitability an effective business strategy is a vitally important component of Channel Partner, dealer network and manufacturer survival.
Hence, growth in revenues and formation of a stronger brand is directly proportional to the kind of partnerships the business makes. Ascertaining the credibility of prospective partners is a challenging job.
To redeem the businesses from the noncore activity of selecting partners, we offer Associate Rating services. Associate Rating involves a thorough credibility check against the prospective dealers/partners/franchisees of the principal business on the following parameters:
• Financial Strength
• Operational Efficiency
• Lifestyle analysis
• Reputation in the market
Many manufacturers manage their Business strategy through a 'Dealer Evaluation ' where there are varying levels of participation, manufacturer interest and customer recognition. A successful and sustaining Channel Partner programme will vary depending on the new car brand but it should always be appropriate to total volumes, vehicle values, customer expectations and the national market.
• Using our Associate Rating tool, which allows us to capture and record vital dealer data, including current performance in comparison to manufacturer standards we can provide any motor manufacturer or importer with a clear view of their dealer network sales potential and training needs.
• Our Associate Rating tool is bespoke to each country, dealer network or franchise and help to know the following questions like the the gross profit per unit from retailing Channel Partners, the average warranty cost , average stock turn and comparison from dealership to dealership and region to region, , the total potential for Channel Partner sales within the whole network,
• We can provide you with clear and concise answers to these questions and many more to help you appreciate how dealers think, how they operate, the capacity and capabilities that they have, and what they need from you to help them grow profits and margins
The Vital Factor
• Facilitating Efficiency in Business...
Our information on products, Ratings, and solutions reflect independent, professional and impartial opinions, which assist businesses enhance the quality of their decisions and help the client access a broader investor and associate base and even lesser known companies approach the money and financial institutions.
• The Research Factor...
We strongly believe that the quality of analytical output is a derivative of an organization’s research capabilities. We have dedicated teams for Monetary, Fiscal, Industry and Sector research, and a panel of Advisors to enhance our in-house capabilities. Our research base enables us to maintain the highest standards of quality and credibility.